Severance and Exit Costs

3 Months Ended

Jun. 30, 2015

Restructuring and Related Activities [Abstract]

Severance and Exit Costs

Note 10. Severance and Exit Costs

Severance and exit costs consist of lease exit costs primarily associated with tower and cell sites, access exit costs related to payments that will continue to be made under our backhaul access contracts for which we will no longer be receiving any economic benefit, and severance costs associated with reduction in our work force.

As a result of the United States Cellular (U.S. Cellular) asset acquisition, which closed in May 2013, we recorded a liability related to network shut-down costs, which primarily consisted of lease exit costs, for which we agreed to reimburse U.S. Cellular. During the quarter ended June 30, 2015, we revised our estimate and, as a result, we reduced the reserve, resulting in approximately $20 million of income included in "Other, net" on the consolidated statements of comprehensive (loss) income.

We expect to incur additional exit costs in the future related to the transition of our existing backhaul architecture to a replacement technology for our network and the efforts associated with the integration of our acquisitions, such as further evaluation of the future use of the Clearwire 4G broadband network, among other initiatives. These additional exit costs are expected to range between approximately $75 million to $150 million, of which the majority is expected to be incurred by March 31, 2016.

The following provides the activity in the severance and exit costs liability included in "Accounts payable," "Accrued expenses and other current liabilities" and "Other liabilities" within the consolidated balance sheets:

	March 31, 2015		Net (Benefit) Expense				Cash Payments and Other			June 30, 2015
	(in millions)
Lease exit costs	$	291	$	(15	)	(1)	$	(35	)	$	241
Severance costs	119		7			(2)	(56		)	70
Access exit costs	44		1			(3)	(18		)	27
	$	454	$	(7	)		$	(109	)	$	338

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(1) In addition to the $20 million income (Wireless only) related to U.S. Cellular, we recognized costs of $5 million (Wireless only) for the three-month period endedJune 30, 2015 included in "Other, net" on the consolidated statements of comprehensive (loss) income.

(2) For the three-month period endedJune 30, 2015, we recognized costs of $7 million ($6 million Wireless, $1 million Wireline) included in "Other, net" on the consolidated statements of comprehensive (loss) income.

(3) For the three-month period endedJune 30, 2015, we recognized costs of $1 million (Wireless only) included in "Other, net" on the consolidated statements of comprehensive (loss) income.